"The balance in the onion market is not good," says Rinus Wisse of Wiscomex. "Exports are actually not doing badly at all, yet market sentiment has remained subdued for weeks. Exports have been averaging 20,000 tonnes of onions per week for some time now. That places us among the better years in terms of sales. However, everyone, from large to small players, seems to be somewhat stuck. There are still more than enough onions available, just not enough to cause the market to collapse. Growers are fortunate that there has been strong demand for Dutch onions this season. With such a record harvest and ample availability in Europe, prices could easily have been even lower."
© Wiscomex bv
"If the market collapses, you feel it from the grower's side as a packer. If the market rises, the pressure comes from your customers. But right now, everyone is watching each other, and nothing is moving. In addition, since the New Year, larger processors have been taking a proportionally bigger share of the market. That does not make things any easier for smaller, independent packers. There has also been slightly more hope than solid numbers in purchasing strategies this season, which has proven to be risky. Logically, towards the end of the season, only artificial hype can provide some relief," the exporter continues.
© Wiscomex bvWinter onions of the Tornado variety are in good shape
"Across the sales markets, we continue to see some fluctuations. At times, countries such as the Ivory Coast increase their volumes, while at the same time, markets like Morocco drop out. As a result, overall export volumes remain fairly stable. However, selling red onions is proving to be difficult. Markets are already being supplied by Egypt. With such a wide choice available, quality is not an issue. At current supply levels, there is something for everyone, but demand does not always match the price. The season is now well into its final six weeks, and the new crop of winter onions is currently looking good."
For more information:
Rinus Wisse
Wiscomex
Govert Flincklaan 14
4401 SG Yerseke
Tel: +31 113 250 520
Mob: +31 (0) 6 38 35 52 99
[email protected]
www.wiscomex.com
